A Corporation is a legal entity owned by individual stockholders. › Stock is a certificate of ownership in a corporation.
Closely held corporation is a corporation that issues stock to only a few people, often family.
Publicly held corporation is a corporation that sells stock on the open market.
Publicly held corporation have many stockholders, are sold in places like New York Stock Exchange.
Owners / Stockholders They elect a board of directors Board of directors Make all major decisions for corporation, including hiring officers who run corporation. Corporate officers then hire management and employees. These people work in various departments.
1. Limited liability for owners 2. Transferable ownership 3. Ability to attract capital 4. Long life